Webster Financial to Buy Sterling in $5.14 Billion Acquisition

Webster Financial Corp. agreed to purchase Pearl River, New York-based Sterling Bancorp in an all-stock transaction that values the target at $5.14 billion.

Under the terms of the deal, Sterling investors will receive 0.463 share of Webster for each of their shares, the two companies said Monday in a statement. That values Sterling shares at $26.56, or more than 11% higher than the closing price on Friday.

U.S. regional banks have been combining in response to pressure from low interest rates, tepid loan demand and the need to boost technology spending to compete with bigger lenders. Giants such as ...